A Beijing Youth Daily reporter learned from China Railway Property & Casualty Captive Insurance Co., Ltd. (hereinafter referred to as the “Railway Insurance Company”) that since the nationwide railway introduced the optional “Railway Travel Accident Insurance” on November 1 last year, 7.7865 million policies had been sold as of February 15 this year, an average of 72,800 policies per day. However, compared with the millions of train tickets sold nationwide every day, the purchase rate of railway travel insurance remains relatively low.
On November 1 last year, railway passenger personal accident insurance, absent for two years and ten months, once again returned to the public eye. Unlike several years ago, the Railway Travel Accident Insurance launched this time changed from compulsory to voluntary purchase. The railway department provides railway passenger personal accident insurance services (hereinafter referred to as Railway Travel Accident Insurance) for passengers taking trains within China, and passengers may purchase coverage voluntarily. The premium is RMB 3 for adults and RMB 1 for children.
The Railway Insurance Company stated yesterday that Railway Travel Accident Insurance is a product purchased together with the ticket; however, since its launch, the Railway Insurance Company has not exploited its channel advantage to engage in “bundled sales,” insisting instead that passengers make their own choice, with train tickets and insurance certificates issued separately. After purchasing Railway Travel Accident Insurance, passengers may surrender the policy individually at any time before the insurance coverage begins; if an insured passenger refunds the ticket, the insurance is automatically surrendered without any handling fee. Since its launch, the product has not received a single passenger complaint. Despite a surrender rate as high as 18.6% (of which surrenders due to ticket refunds account for 93.6%), the Railway Insurance Company still sets no surrender threshold for passengers.
Railway Travel Accident Insurance was first launched on the official railway website and has gradually been rolled out to railway station ticket windows. At present, railway insurance can be purchased at the ticket windows of railway stations in Beijing and Tianjin.
It is understood that Railway Travel Accident Insurance is an insurance service under which, if the insured, holding a valid travel voucher during the insurance period, takes a domestic passenger train and suffers an accidental injury resulting in death, disability, or injury requiring medical treatment, the Railway Insurance Company pays insurance benefits as agreed. The insurance is voluntarily purchased by passengers when buying train tickets, with a premium of RMB 3 and maximum coverage of RMB 300,000 for accidental death and disability plus RMB 30,000 in accidental medical benefits. After an insured event occurs, on-site railway station and train staff can directly accept the claim report, providing convenient service for passengers.
Railway Travel Accident Insurance offers an ultra-low premium product of RMB 1 designed for minors, and provides complimentary coverage for children under 10 years of age and under 1.2 meters in height; eligible parents can claim it on the 12306 website. Railway Travel Accident Insurance sets no age limit for applicants, and seniors over 60 years of age can also enjoy the insurance service. (Reporter: Wang Wei)
Source: Beijing Youth Daily February 19, 2016